Denny’s Corp announces board chair’s retirement

In a recent filing with the Securities and Exchange Commission, Denny’s Corporation (NASDAQ:DENN) disclosed that Brenda Lauderback, the Chair of the Board of Directors, will retire on May 14, 2025. This announcement, dated today, February 18, 2025, marks the beginning of the company’s search for her successor. The restaurant chain, currently valued at $269 million, has seen its stock decline nearly 28% in the past week, according to InvestingPro data.

Lauderback’s decision to retire will take effect at the end of her current term. Denny’s, a company incorporated in Delaware with headquarters in Spartanburg, South Carolina, has begun the process of identifying a new chair through its ongoing succession planning efforts. The company maintains a FAIR financial health score according to InvestingPro analysis, which offers comprehensive insights through its Pro Research Reports covering over 1,400 US stocks.

The company, which operates within the eating places industry under the standard industrial classification code 5812, has not indicated any immediate impact on its operations or strategic direction following Lauderback’s departure. The board’s succession plan aims to ensure a smooth transition of leadership.

This development follows the company’s adherence to corporate governance practices, which include planning for orderly transitions of its senior leadership. Denny’s Corporation, through its executive offices, has not provided further details regarding the criteria or timeline for selecting the new chair.

Investors and stakeholders of Denny’s Corporation will be watching the upcoming board changes closely, as the leadership transition may influence the company’s strategic decisions moving forward. Trading at a P/E ratio of 12.65 and currently showing signs of being undervalued, the company generated $452 million in revenue over the last twelve months while maintaining profitability. For deeper insights into Denny’s valuation and performance metrics, including additional ProTips, visit InvestingPro.

For further information regarding this announcement, reference can be made to the official SEC filing by Denny’s Corporation. The information in this article is based on the statements provided in the press release.

In other recent news, Denny’s Corporation reported fourth-quarter earnings and revenue that fell short of analyst expectations. The company’s adjusted earnings per share (EPS) were $0.14, a cent below the consensus estimate, and quarterly revenues were $114.7 million, missing the projected $116 million. These results led Benchmark analysts to revise their price target for Denny’s shares, lowering it to $8 from $10, while maintaining a Buy rating.

The revenue shortfall was partly attributed to Denny’s accelerated closure of franchisee-operated restaurants during the quarter, a strategy aimed at eliminating 150 underperforming units by 2025. Despite the revenue miss, the company managed to meet consensus expectations for adjusted earnings before interest, taxes, depreciation, and amortization (AEBITDA) at $22.2 million.

Additionally, Denny’s provided a cautious outlook for 2025, projecting domestic system-wide same-restaurant sales between -2.0% and 1.0%. This outlook and the company’s recent performance led to Benchmark’s price target revision.

These developments are part of Denny’s broader initiative to improve its financial health and efficiency. Despite the lower-than-expected results, the continued Buy rating from Benchmark indicates a positive outlook for the company.

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